WINNIPEG, MANITOBA--(Marketwired - Jun 6, 2014) - Gendis Inc. (TSX:GDS) today announced its financial results for the 1st quarter ended April 30, 2014.

Net earnings for the 1st quarter were $2,440,000 ($0.18 per share) compared to net earnings of $1,845,000 ($0.13 per share) for the prior year 1st quarter. Revenue for the 1st quarter was $1,399,000 compared to $1,420,000 for the prior year 1st quarter. Revenue less expense for the 1st quarter was $643,000 compared to $655,000 for the prior year 1st quarter.

The volatility in net earnings quarter over quarter is primarily due to the change in fair value of equity investments and investment properties with the attendant effect on deferred income taxes.

Condensed summarized information is as follows:

Quarter ended
in millions of Canadian dollars except per share Apr 30
2014		 Apr 30
2013
Revenue
Lease rental revenue 0.9 0.9
Dividends 0.5 0.5
Total revenue 1.4 1.4
Expense
Property 0.4 0.4
Administration & finance 0.4 0.4
Total expense 0.8 0.8
Total revenue less Total expense 0.6 0.6
Fair value change:
Veresen 2.7 1.1
Osum - (0.4 )
Other equity investments (0.4 ) (0.3 )
Investment properties - 1.1
Total fair value change 2.3 1.5
Income tax expense 0.5 0.3
Net earnings 2.4 1.8
Earnings per share $ 0.18 $ 0.13
Apr 30 Jan 31 Apr 30
in millions of Canadian dollars 2014 2014 2013
Fair value of investments:
Veresen 32.4 29.7 26.8
Osum 11.5 11.5 13.2
Other equity investments 3.5 3.7 2.7
Investment properties 30.4 30.4 31.0
Other assets 1.0 1.0 0.7
Debt & payables 3.5 3.3 3.0
Deferred tax payable 1.7 1.2 0.9
Shareholders' equity 73.6 71.8 70.5
Quarter ended
Apr 30 Apr 30
in millions of Canadian dollars 2014 2013
Cash flow from:
Operations
Cash receipts 1.6 1.6
Cash disbursements & finance expense (0.4 ) (0.7 )
Income taxes paid (0.2 ) (0.2 )
Investing
Proceeds on sales of investments - 2.0
Purchase of investments (0.2 ) -
Expenditures on investment properties - (0.1 )
Expenditures on equipment (0.1 ) -
Financing
Increase (decrease) in debt - (2.2 )
Purchase of share capital for cancellation (0.3 ) (0.2 )
Dividends (0.3 ) (0.3 )
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
Apr 30 Jan 31 Apr 30
(unaudited - thousands of Canadian dollars) 2014 2014 2013
ASSETS
Current assets
Cash 62 47 28
Receivables 822 995 638
Total current assets 884 1,042 666
Non-current assets
Equity investments (note 2) 47,430 44,927 42,672
Investment property 30,385 30,385 30,985
Furnishings and equipment 138 61 49
Total non-current assets 77,953 75,373 73,706
Total assets 78,837 76,415 74,372
LIABILITIES
Current liabilities
Credit facilities (note 3) 1,599 1,599 1,299
Payables 999 806 719
Total current liabilities 2,598 2,405 2,018
Non-current liabilities
Post employment benefit obligation 937 937 972
Deferred income tax payable 1,656 1,231 851
Total non-current liabilities 2,593 2,168 1,823
Total liabilities 5,191 4,573 3,841
SHAREHOLDERS' EQUITY 73,646 71,842 70,531
Total liabilities and shareholders' equity 78,837 76,415 74,372
GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED APRIL 30
quarter ended
(unaudited - thousands of Canadian dollars except for share data) 2014 2013
Revenue
Lease rentals 899 919
Dividends 500 501
Total revenue 1,399 1,420
Expense
Property 372 378
Administration 368 368
Finance 16 19
Total expense 756 765
Total revenue less Total expense 643 655
Fair value change
Investment property - 1,144
Equity investments 2,276 371
Total fair value change 2,276 1,515
Earnings before income tax 2,919 2,170
Income tax expense 479 325
Net earnings from operations and comprehensive income 2,440 1,845
Net earnings from operations per share $ 0.18 $ 0.13
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited - thousands - shares & Canadian dollars as applicable) Share Capital Retained
earnings		 Total
# $ $ $
Balance - January 31, 2013 13,816 14,523 54,660 69,183
Comprehensive income 1,845 1,845
Purchase of share capital for cancellation (48 ) (51 ) (101 ) (152 )
Dividend paid (345 ) (345 )
Balance - April 30, 2013 13,768 14,472 56,059 70,531
For the remainder of the year:
Comprehensive loss 3,247 3,247
Purchase of share capital for cancellation (287 ) (302 ) (611 ) (913 )
Dividends paid (1,023 ) (1,023 )
Balance - January 31, 2014 13,481 14,170 57,672 71,842
Comprehensive income 2,440 2,440
Purchase of share capital for cancellation (93 ) (207 ) (300 )
Dividend paid (336 ) (336 )
Balance - April 30, 2014 14,077 59,569 73,646
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED APRIL 30
Quarter ended
(unaudited - thousands of Canadian dollars) 2014 2013
Changes in cash position
By operations
Cash receipts 1,614 1,583
Cash disbursements (425 ) (678 )
Income taxes paid (211 ) (203 )
Finance expense paid (17 ) (20 )
Total by operations 961 682
By investing activities
Proceeds from sale of equity investments - 2,037
Acquisition of equity investments (227 ) -
Expenditures on investment property - (66 )
Expenditures on furnishings and equipment (82 ) (6 )
Total by investing activities (309 ) 1,965
By financing activities
Net repayment of credit facilities - (2,199 )
Purchase of share capital for cancellation (300 ) (152 )
Dividend paid (337 ) (345 )
Total by financing activities (637 ) (2,696 )
Increase (decrease) in cash 15 (49 )
Cash - beginning of period 47 77
Cash - end of period 62 28
Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
April 30, 2014
(All tabular amounts in thousands of Canadian dollars unless otherwise stated)

1. General information

General information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial statements for the year ended January 31, 2014, which have been prepared in accordance with International Financial Reporting Standards. These interim condensed financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. The principal accounting policies applied in the preparation of these interim condensed financial statements are the same as set out in Note 2 to the complete audited annual financial statements for the year ended January 31, 2014. These policies have been consistently applied to all periods presented.

2. Equity investments

Apr 30 Jan 31
2014 2014
Veresen 32,420 29,740
Osum 11,502 11,502
Other equity investments 3,508 3,685
47,430 44,927

3. Credit facilities

Borrowing
Balance		 Remaining
borrowing
availability		 Carrying value
of collateral
Apr 30 Jan 31 Apr 30 Jan 31 Apr 30 Jan 31
2014 2014 2014 2014 2014 2014
Banker's acceptances 999 1,499
Bank demand loan 600 100
1,599 1,599 8,400 8,400 30,019 27,538
Broker's margin account - - 1,200 1,101 2,759 2,547
1,599 1,599 9,600 9,501 32,778 30,085

4. Subsequent Event

On June 6, 2014, the Company declared a regular dividend of 2.5¢ per share to shareholders of record June 20, 2014, payable July 4, 2014.

5. Operating segments

Quarter
Ended
Apr 30

Realty

Corporate
Inter-
segment

Total
Revenue 2014 916 728 245 1,399
2013 936 711 (227 ) 1,420
Property & administration expense 2014 426 385 (71 ) 740
2013 432 385 (71 ) 746
Finance expense 2014 174 16 (174 ) 16
2013 156 19 (156 ) 19
Total revenue less total expense 2014 316 327 - 643
2013 348 307 - 655
Fair value change 2014 - 2,276 - 2,276
2013 1,144 371 - 1,515
Income tax expense (recovery) 2014 86 393 - 479
2013 403 (78 ) - 325
Net earnings from operations & Comprehensive income 2014 230 2,210 - 2,440
2013 1,089 756 - 1,845
Total assets 2014 31,067 69,916 (22,146 ) 78,837
2013 31,444 63,874 (20,946 ) 74,372
Total liabilities 2014 24,539 2,798 (22,146 ) 5,191
2013 22,264 2,523 (20,946 ) 3,841